France can produce either 50 units of cheese or 80 units of wine per labour hour. Canada can produce either 90 units of cheese or 68 units of wine per labour hour. Suppose Canada follows its comparative advantage in deciding what to produce and trade with France at a trade price of 1.47 units of wine per unit of cheese. For every 5100 units of goods that Canada produces and trades with France, what are the gains from trade in terms of the other goods? Answer: units (DO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL ANSWER. ENTER YOUR RESPONSE ROUNDED TO TWO DECIMAL PLACES, AND NO SEPARATOR FOR THOUSANDS.)

France can produce either 50 units of cheese or 80 units of wine per labour hour. Canada can produce either 90 units of cheese or 68 units of wine per labour hour. Suppose Canada follows its comparative advantage in deciding what to produce and trade with France at a trade price of 1.47 units of wine per unit of cheese. For every 5100 units of goods that Canada produces and trades with France, what are the gains from trade in terms of the other goods? Answer: units (DO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL ANSWER. ENTER YOUR RESPONSE ROUNDED TO TWO DECIMAL PLACES, AND NO SEPARATOR FOR THOUSANDS.)

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter27: Multinational Financial Management

Section: Chapter Questions

Problem 3P

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Question

France can produce either 50 units of cheese or 80 units of wine per labour hour.
Canada can produce either 90 units of cheese or 68 units of wine per labour hour.
Suppose Canada follows its comparative advantage in deciding what to produce and
trade with France at a trade price of 1.47 units of wine per unit of cheese. For every
5100 units of goods that Canada produces and trades with France, what are the gains
from trade in terms of the other goods?
Answer:
units
(DO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL
ANSWER. ENTER YOUR RESPONSE ROUNDED TO TWO DECIMAL PLACES,
AND NO SEPARATOR FOR THOUSANDS.)
re

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